ISI PEB 2015

[kk]

QUESTION 1 a) 15,5   b)4,4   c) RS 15
QUESTION 2 a) B(πp²t²/4k²)   b) 2kr/p  
 what should be the maximum tax rate??pls tell me if u r getting the same answer
and how to solve ques 2?

Hi KK, the answer to 1(c) should be 13.5. Only when income is increased by this amount , he would be able to have the same utility which he had when the bundle was (15,5)

Please suggest if it is wrong

[onionknight]

Yeah, that would be the correct answer.